Sumitomo Trust & Banking Co. said Friday it will acquire First Credit Corp., a mortgage-backed loan company, from U.S. investment fund Lone Star Group for 130 billion yen at the end of November.
Sumitomo Trust said it hoped to strengthen its business through the acquisition of First Credit, which is strong in mortgage-backed loans to small and medium-size firms as well as individual customers.
First Credit was formerly affiliated with the Long-Term Credit Bank of Japan, Shinsei Bank's predecessor. It went bankrupt in 2001 and Loan Star purchased it for 100 billion yen in 2002.